* TSX ends up 0.4% at 34,290.73

* Posts higher closing level since April 20

* Energy adds 2.4% as oil settles 4.2% higher

* Pet Value shares drop nearly 14%

(Updates at market close)

By Fergal Smith

TORONTO, May 12 (Reuters)) - Canada's main stock index

clawed back its earlier declines to end higher on Tuesday as a

jump in oil prices driven by an impasse in U.S.-Iran peace talks

lifted energy shares.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 151.85 points, or 0.4%, at 34,290.73, marking

its highest closing level since April 20.

"You're seeing more of a buy the dip mentality," said

Michael Dehal, a senior portfolio manager at Dehal Investment

Partners at Raymond James. "People are bracing for some kind of

energy-driven inflation shock that we could get and that's why

we're seeing more buying pressure on commodity stocks."

U.S. consumer inflation increased further in April, with the

annual rate posting its largest gain in three years.

The energy sector added 2.4% as the price of oil

settled 4.2% higher at $102.18 a barrel. Stark

differences between the U.S. and Iran over a proposal to end the

war in the Middle East raised concerns of prolonged supply

disruptions.

Consumer staples gained 1.1% and the materials group, which

includes metal mining shares, ended 0.8% higher. Copper prices

rose 1.9% to move above Monday's record closing high as

funds bet on further gains due to supply issues and bullish

technical signals.

Among the sectors that lost ground was technology.

It fell 1.7%, with shares of e-commerce company Shopify Inc ( SHOP )

down 2.4%.

Pet Valu Holdings Ltd ( PTVLF ) shares tumbled nearly 14% to

a record low after the pet food retailer's first-quarter profit

fell on higher operating costs.